4. BUDGET UPDATE DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS

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1 SAC PLANNING & BUDGET MEETING MINUTES APRIL 5, :30P.M. 3:00P.M. Approved May 2, 2017 The mission of Santa Ana College is to be a leader and partner in meeting the intellectual, cultural, technological and workforce development needs of our diverse community. Santa Ana College provides access and equity in a dynamic learning environment that prepares students for transfer, careers and lifelong intellectual pursuits in a global community. Administrators Academic Senate CLASSIFIED GUESTS Mike Collins, co-chair Ed Fosmire Gabe Shweiri(a) Omelina Garcia Cherylee Kushida Eve Kikawa Jim Kennedy(a) Ray Hicks co-chair Brian Sos(a) Denise Hatakeyama(a) John Tran Melissa Utsuki Carlos Lopez(a) Elliott Jones Monica Zarske Jimmy Nguyen(a) Archana Bhandari John Steffens Roy Shahbazian George Wright Leslie Wood-Rogers(a) Teresa Mercado Cota Adam O Connor Student Rep. Nilo Lipiz Viridiana Munoz(a) TingMing Zhang (alt.) (a) 1. WELCOME Meeting called to order 1:33p.m. Meeting adjourned 3:15p.m. Self-introductions were made. Dr. Collins welcomed Adam O Conner, Asst. Vice Chancellor of Fiscal Services to the meeting. 2. PUBLIC COMMENTS DISCUSSION/COMMENTS ACTIONS/ FOLLOW UPS There were no public comments. 3. MINUTES DISCUSSION/COMMENTS ACTIONS/ FOLLOW UPS The March 7, 2017 minutes were not approved due to a lack of quorum. They will be presented at the May 2, 2017 meeting. 4. BUDGET UPDATE DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS State: State General Fund revenues for February 2017 came in short of projections, continuing the weak revenue trend since the Budget was enacted. o The Department of Finance (DOF) reports that revenues fell short of projections by $256 million for the month, or 4.9%. And remember that this shortfall is measured against the downward revision to the General Fund revenue forecast presented with the Governor s Budget proposal in January. T The DOF also reports that year-to-date revenues are down $253 million. Awaiting the May Revise, which will adjust the Governor s January budget proposal in accordance with State-wide revenue intake. DIST: Budget assumptions were approved by the Board a few weeks ago. There was a change to the assumptions reviewed by the SAC Planning and Budget Committee related to a $14,000 fingerprinting cost. That cost was removed.

2 BUDGET UPDATE (cont.) DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS Mr. O Conner shared the following related to the Budget Assumptions: Revenue Little revenue coming in. Not projecting any growth. 2.3million in COLA for RSCCD monies cannot be used until after negotiations. Very small Base Allocation increase which could change. Expense 2.3mil in COLA Step and Column increases Agreement with FARCCD CALPERS and CALSTRS increase - 1.8mil ARCH (Annual Required Contribution for Health Benefits) increased last year by 3mil. Last year this was added as a one-time basis. It is being added this year as an ongoing cost. o It could escalate, the study is done every other year, the assumption used by the actuaries must match the assumptions for CALPERS and CALSTRS. o o The study looks at all retirees now and the current employees The future of the ARCH Short-term where it is now or higher. Long term hoping the trend will come back down. It is dependent on what is used by CALPERS and CALSTRS. The membership was also advised that Chancellor s Cabinet has met to discuss how to balance the budget. There are 4 8 million in budget cuts that need to be identified to be presented to the Board very quickly. The cuts will be 18% for the district and approximately a 70/30 split between SAC and SCC. There was an inquiry about the Saudi Arabia project and if it had brought in any revenue to the district and/or is it expected to bring in revenue in the future. Mr. O Conner noted that he could not comment other than to say there has been no revenue to date. Members were advised that the funds for the OEC project remain in the capital outlay account, however the funds in the account will not be enough to complete the project. It was noted that the current balance in this account is 30mil with a projected cost of the project at 35mil. Members were reminded that these were one-time funds. SAC: SAC has been requested by the Chancellor to put together a budget reduction plan in order to cut $1.7 million (halout of its ongoing Fund 11 expenses for the Adopted Budget. SAC has developed a strategy that makes this cut, while

3 protecting classified employees and student support services. Efficiency and productivity in the schedule are key to the success of our reductions. o Ongoing potential savings in electricity o ISA agreement over-budgeting o Reduction in Part Time Faculty utilization o Review of release/reassign time o Reduction in hourly employees in response to the Full Time hires SAC has the opportunity to use one-time Fund 13 resources to fill in holes where FTES production can be realized Latest FON/faculty hiring target is 15 replacement faculty, with 1 being noncredit ESL = total of 16 SAC Tentative Budget is in the process of being built- with a due date of April 19 th 5. ENROLLMENT UPDATE DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS Dr. Collins provided the Enrollment Update on Carlos Lopez s behalf. SAC Credit programs continue to estimate down 167 FTES (-2.5%) for the spring semester compared to target. Public Safety Academy enrollment projections are beginning to firm up and look like they will generate above the current estimate of As our public safety positive attendance enrollment firms up through April, I hope to be able to increase the current estimate and close our gap to target. Academic Affairs deans are continuing to review our Gr8 Weeks enrollment data and are recommending additional sections based on demand. Notably, SAC credit programs are performing slightly better than last spring at +50 days since the start of term. As of this morning, overall FTES is up 19 (+0.4%) compared to last spring. The college is experiencing real strength in our distance education offering compared to last spring. Anticipating the year will be ending significantly down in FTEs. It was noted that currently the college is in Stabilization, meaning our FTEs has dropped below our 15/16 numbers. 6. STUDENT UPDATE DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS There was no student present. 7. SACTAC DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS Distance Education Support Plan Cherylee Kushida Members were provided with an overview of requested additional funding by Distance Education. This funding would be for supporting students and faculty ACTION Motion was moved by E. Jones to recommend the Distance Education Support Plan from the Planning & Budget Committee to

4 SACTAC (cont.) DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS Immediate needs are for our Learning Management System (LMS) migration from Blackboard to Canvas. Migration will begin Spring 2017 and complete Spring 2018, with a complete College Council. 2 nd R. Shahbazian Discussion ensued. cutover to Canvas in Summer The recommendation was o For this migration, additional personnel, 800# helpdesk and faculty mentor unanimously approved. support is required. Moving forward, after migration, additional support will be used for support of Canvas, accessibility training and Learning Outcome integration in Canvas, among other training and support in DE. SAC Computer Replacement Plan Archana Bhardari This item is a follow up to the December 6 meeting discussion where the SAC Planning and Budget Committee charged SACTAC with providing a replacement plan between $800,000 $1mil. Archana Bhardari, Director of Academic Services presented the committee with a Computer Replacement Plan that outlined the campus s needs moving forward. The plan included lab upgrades, cost estimates and prioritization from SACTAC. The plan includes CEC as well. The focus is to phase the replacement schedule on a 5 year schedule which will help maintaining a $300, $400,000 replacement schedule budget. The cost estimate is at $984, , however members were reminded that the team is still waiting for the quotes. It was clarified that the cost will not exceed $1mil. It was noted that these funds have been set aside in Fund 13 in the Expenditure plan for 16/17 with one-time funds. Members reminded that there will be computer replacement costs next year. The importance of the future funding for Technology upgrades was stressed to the membership. Mediation for 3 classrooms John Tran John Tran provided a brief overview of three classrooms that are in need of immediate assistance. F-102 and F-103 they have ongoing issues with the monitors as well as connectivity issues. Estimated costs - $24,000. C-104 is the 2 nd largest lecture room on campus and has needs a projector replacement with a special lens. Estimated costs - $16,000. The goal is for the college is to be fully mediated by the end of The college is currently at 75%. An update replacement plan will be forward to Dr. Collins for review. Dr. Collins will work with Mr. Tran to identify some funding in an effort to address the last 25%. ACTION Motion was moved by E. Jones to recommend the SAC Technology Replacement Plan FY 16/17 to College Council as presented. 2 nd N. Lipiz Discussion ensued. The recommendation was unanimously approved.

5 8. ACCREDITATION DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS Work continues on the Mission Statement. Members were advised that once the Mission Statement is finished, it will be brought back to the membership. 9. OLD BUSINESS DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS No old business. 10. NEW BUSINESS DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS The membership was advised that recently there was a Tri-Cabinet meeting where Chancellor s Cabinet presented different scenarios where effects of Stabilization and borrowing were presented. 11. FUTURE AGENDA ITEMS Dr. Collins invited Mr. O Connor to address the Planning and Budget membership regarding Stability and Restoration with regards to FTE generation. (Presentation attached) The presentation included different scenarios and strategies for borrowing this year and in the out years. The information shared was intended to provide information to the membership on where we are as a college and as a district. The scenarios explored options on how to keep the revenues steady. Increasing costs were not included. Discussion ensued: Statewide, colleges are seeing growth challenges. Potential students are working in a good economy equals less students enrolling in classes. College system is predicated on growth. Biggest way for the district to increase revenue is to have more students. Costs keep increasing. A lot of colleges are in Stabilization. New Era - Unless the state finds a way to fund the colleges not just serving additional students but also covering costs. Stabilization is when revenue is stabilized from the state even though FTE production has dropped. o 3 year time frame to grow back what you lost. o Funding is gone in a year. The District s structural deficit 5.6 mil, possibly 8mil is not a one-time occurrence. The scenarios showed the District is borrowing from their own FTE production. o Summer FTEs can be pulled into either year. Members were reminded that when recessions hit, enrollment increases however the State s ability to fund increases to base apportionment and ongoing increases to revenue to districts is very difficult. Santa Ana College maintains a contingency reserve that allows the college to take a proactive approach in continuing to serve students during these challenging times.

6 12. OTHER DISCUSSION/ COMMENTS ACTIONS/ FOLLOW UPS Submitted by Geni Lusk Next Meeting May 2, 2017